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A company's 5.5% coupon rate, semiannual payment, $1,000 par value bond that matures in 7 years sells at a price of $9,825. The company's federal-plus-state

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A company's 5.5% coupon rate, semiannual payment, $1,000 par value bond that matures in 7 years sells at a price of $9,825. The company's federal-plus-state tax rate is 25%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? O 5.81% 4.36% 3.89% 0.175%

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